BILL NUMBER: S2605

SPONSOR: GRIFFO
 
TITLE OF BILL:

An act to amend the energy law, in relation to directing the state ener-
gy planning board to conduct a study of natural gas reliability

 
PURPOSE OR GENERAL IDEA OF BILL:

This bill would require the New York State Energy Planning Board to
study the overall reliability of the State's supply of natural gas and
to prepare a report on such study and transmit the report and reliabil-
ity study to the governor and the legislature.

 
SUMMARY OF SPECIFIC PROVISIONS:

Section one of the bill provides that before January 1, 2024, the State
Energy Planning Board shall contract with an independent and competi-
tively bid contractor with experience in natural gas to study the over-
all reliability of the State's supply of natural gas. The study would
include an assessment of the need for additional transmission of natural
              

gas in the State and to states in New England; the integrity and impacts
of new natural gas infrastructure as it relates to the environment; the
consequences to existing natural gas customers in the State of
constraints in the natural gas delivery system; the economic demand for
additional natural gas from residential, commercial, manufacturing and
industrial sectors in the State; and the status of and future opportu-
nities for the implementation of natural gas expansion under public
service commission proceedings and the State Energy Plan.

Section two of the bill sets forth the effective date.

 
JUSTIFICATION:

The Clean Energy Standard in New York State is directed at significantly
expanding the role of renewables in New York's energy market with a goal
of 70% renewables by 2030. In implementing the expansion to renewables,
the state should not lose focus on the importance of natural gas in
generating cleaner electricity, heating homes and powering businesses in
New York while providing affordable energy with a positive impact on air
emissions. Natural gas is an important bridge to obtaining the goal of
continued carbon reduction.

The objective of the study in this bill is to refocus on the reliability
of natural gas to determine if any modification is required to the
State's Energy Plan. The energy sector is constantly evolving and the
energy plan for natural gas should be reviewed and updated if necessary.

Reliability risks should be assessed. There are a number of commercial
and industrial customers that are currently unable to access uninterrup-
tible natural gas service. There are also residential customers that
want to access natural gas but are unable to connect.

Pipeline development and infrastructure issues are impacting not only
New York State but also New England. Constraints in the delivery system
particularly in the winter months has significant price consequences.
Planning for the natural gas market will help prevent polar vortex-type
price spikes and place New York in a better position to transition its
energy market. Natural gas provides a significant and real contribution
to business and residential customers. This bill seeks to ensure that
appropriate planning and actions are taken to guarantee that there is
reliability in the supply of natural gas.

 
PRIOR LEGISLATIVE HISTORY:

2021-22 - S. 4736 - Energy and Telecommunications Committee.

2019-20 - S. 5076 - Energy and Telecommunications Committee.

2017-18 - Passed Senate.

 
FISCAL IMPLICATIONS:

None.

 
EFFECTIVE DATE:
This act shall take effect immediately.